Building Upon Our Foundation

Building Upon Our FoundationBuilding Upon Our Foundation

Key investments in five existing plants and construction of a new assembly plant further solidify FCA’s commitment to Michigan and Detroit.

February 18, 2020 - The historical significance of Detroit and its surrounding communities in the world of automotive manufacturing is undeniable. Now, with a recent investment announcement, FCA is expanding its presence by building the first new assembly plant within the city limits of Detroit in nearly 30 years.

In February 2019, FCA announced a $4.5 billion investment to expand its production capacity in Michigan and further grow its core brands by producing two all-new Jeep® branded vehicles and their electrified models to meet increasing consumer demand.

“Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our US manufacturing operations. [This] announcement represents the next step in that strategy,” said Mike Manley, Group CEO.

These investments demonstrate the Company’s dedication and commitment to instilling deep roots in the communities where it operates and where its vehicles are sold. Not only do they lay the groundwork for a more efficient and streamlined production, creating great advantages for FCA, its brands, and future car-buyers, but there is an immeasurable effect on local communities, beginning with new job opportunities. As a result of the $4.5 billion investment, FCA looks to create nearly 6,500 new jobs, with almost 5,000 of those in Detroit.

A State-of-the-Art Assembly Site for Jeep®

With an investment of $1.6 billion, FCA is converting the two plants that comprise the Mack Avenue Engine Complex into a state-of-the-art assembly site for Jeep vehicles. Nearly 700 people have been working nearly around the clock since May to convert the Detroit engine complex into a vehicle assembly site, with the current Mack I facility being prepared for general assembly and Mack II being repurposed as the new body shop. In addition to work on the existing facilities, ­construction is also progressing on another key component of any assembly plant, the paint shop. A milestone in the construction project was reached in August, with the installation of the first of the 299 vertical steel columns that will form the skeleton of the new 79,000-square-foot paint shop. Since then, 20 trucks a day have been delivering new equipment for installation across the facility.

Once complete, the new site will be FCA’s most efficient and sustainable plant in North America, applying the most advanced technologies and processes, and achieving the lowest VOC emissions rate of any auto assembly plant in the United States. Environmental efforts support six priority areas: enhance air quality, improve landscape aesthetics, reduce and manage stormwater impact, support pollinators and wildlife habitats, provide educational opportunities and support pride in the community.

The new plant will be producing an all-new, three-row, full-size Jeep SUV and the next-generation Jeep Grand Cherokee, including the electrified versions of both. The first units of the three-row models are expected to roll off the line by the end of 2020, followed by the all-new Grand Cherokee in the first half of 2021. It will also have a tangible impact on employment in the area, with the planned addition of 3,850 new jobs.

In addition to the Mack project, $900 million are earmarked to retool and modernize the Jefferson North Assembly Plant for continued production of the Dodge Durango and the next generation Jeep Grand Cherokee. As a result, FCA expects to create 1,100 new jobs at Jefferson North.

FCA’s commitment to Detroit goes beyond the creation of facilities and jobs. The Company and the City of Detroit committed to a Community Benefits Agreement, which provides more than $35 million in support for neighborhood improvements, housing, workforce development, education and training programs, and environmental initiatives. The initiatives, which are above and beyond the Company’s financial investment in its plants, were identified through weeks of discussions with residents in the neighborhoods surrounding the plant.

As Mark Stewart, Chief Operating Officer, FCA North America said: “Our future lies in the hearts and minds of the young people who grow and thrive in Detroit…which is why we will be partnering with local organizations to further enhance the neighborhood.”

The additional $2 billion in announced investment will be spent at the Warren Truck, Warren Stamping, Sterling Stamping and Dundee Engine plants, adding another nearly 1,500 new jobs to the FCA rolls. Warren Truck will get $1.5 billion to retool the plant to produce the all-new Jeep Wagoneer and Grand Wagoneer, including the electrified versions of both, as well as continue production of the Ram 1500 Classic. The Warren Stamping and Sterling Stamping plants will receive more than $400 million in total investment to support the additional production. Pentastar engines, previously produced at Mack, are being relocated to Dundee with an additional $119 million investment.